Mayor Chris Beutler today said the City needs to act now to keep arterial street construction from reaching
"dangerously low levels" in the near future. He made the comments at a news conference to release the phase one
report from a committee the Mayor appointed last year to review the City's impact fee system and recommend possible
changes or alternatives. The Mayor said the committee expanded its work to include the broader issue of
infrastructure financing.

"We need to come together as a community to discuss and build consensus around funding solutions that work for this
community," Beutler said. "In the coming year, my administration will dedicate a significant amount of time and
resources to this effort, and I look forward the community-wide conversation that will take place."

Nick Cusick, who serves on the Chamber of Commerce Board of Directors, chaired the committee. Other members are
Steve Stueck, a member of the board of the REALTORS Association of Lincoln; Fred Hoke, who was with the Lincoln Home
Builders Association during the committee's deliberations; and Jim Christo, a home builder and a member of the
Lincoln Independent Business Association.

The committee recommended that the City maintain the current policy of annual pre-approved inflationary increases
to all impact fees. If the increases are overridden due to unfavorable economic conditions, the committee said the
City should consider capturing the lost revenues in future years as conditions improve. The City Council has voted
to override these increases the last two years, so impact fees are currently frozen at the 2007 levels.

"I reluctantly agreed not to veto the freeze for 2009 and noted that City needs to recoup the lost revenues when
the economy rebounds, so I am pleased that the committee is also asking the City to consider this approach," Beutler
said.

Another committee recommendation is that the City attempt a new General Obligation Bond for road infrastructure,
when the economic climate allows. "As our infrastructure needs continue to grow and revenues continue to lag, a
voter-approved bond may be necessary in the future when the economy improves," Beutler said. "We have a lot of work
to do before that point, and that's why I'm pleased to see the Committee's next recommendation - that we report to
the public at least once a year on the City's unfunded infrastructures needs. These recommendations go to the heart
of transparency in government."

Other recommendations:

Increase the property tax levy if needed to fund properly all City needs, including an appropriate
contribution to street infrastructure funding.

Reduce the number of fee districts from seven to four to allow impact fee dollars to accumulate faster and
give the City greater flexibility.

Continue to pursue the Urban Growth District concept in the State Legislature. Senator Amanda McGill has
re-introduced this bill.

Continue to use pre-approved increases in the wheel tax. Wheel taxes were increased in 2004 and 2007, and a
third increase is scheduled for 2010. A five-dollar increase generates about $1 million annually.

In the next phase of its review the committee will look more in depth at how other communities structure their
impact fees. Those recommendations are expected this summer.